Xpeng Develops AI Chip Surpassing Nvidia, Eyes Volkswagen Partnership

Xpeng Inc., a prominent Chinese electric vehicle manufacturer, has announced the development of an advanced AI chip that surpasses the performance of Nvidia's products. The company is in discussions to supply this chip to other automakers, with Volkswagen AG being one of the potential clients. Xpeng's CEO, He Xiaopeng, revealed that the company is working to integrate its proprietary Turing AI chip into certain Volkswagen models slated for release in China next year.

He Xiaopeng emphasized that developing AI chips is a long-term investment for Xpeng, as the company aims to expand its operations into various sectors, including automobiles, aerospace, and robotics. The Turing AI chip is designed to support these platforms and provide the necessary computational power for AI large language models. Xpeng is actively seeking long-term partners for this venture and is in negotiations with other automakers as well.

Xpeng clarified that discussions with Volkswagen and other companies regarding the use of the Turing AI chip are still ongoing. A spokesperson for Volkswagen China confirmed the collaboration, stating that the two companies are jointly developing two models for the mid-range car market. These models are expected to leverage the strengths of both companies and will be launched next year.

This development underscores Xpeng's strategic move to diversify its revenue streams and establish itself as a key player in the AI chip market. By supplying its advanced AI chips to other automakers, Xpeng aims to enhance its technological prowess and secure a competitive edge in the rapidly evolving automotive industry. The collaboration with Volkswagen further solidifies Xpeng's position in the market and highlights its commitment to innovation and technological advancement.